Confusion over depreciation rates

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 February 2013
Hi,

I m Extremely Confused over the depreciation rates, Of the income tax act and the company act 1956.

when Co. Rates Act are Applicable and when incometax rates are applicable and to which entity like co., Propreitorship firms,

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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03 February 2013 For companies must and should they has to follow the depreciation rates as per companies act for their accounting and has to following income tax rates to compute the taxable income for income tax purpose and on that basis you have to file income tax return.

For other than companies there is no specific depreciation rates to accounting so one can use their own rate of depreciation but must and should follow the income tax rates to compute taxable income and filing of return.

Conclusion: Every assessee must and should follow the income tax depreciation rate to compute taxable income and filing of return of income etc... irrespective of they following accounting policy or rates for their accounts. However company assessee should be follow companies act depreciation rate for their accounting.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2013 Thanks a lot sir

Can you Provide me the rate schedule of Company & as per income tax ?

Sir, The Provision of 180 days than half rate of depreciation is appliacable only to the other than company??

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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04 February 2013 Follow the following link for company's act rates.
http://taxguru.in/company-law/rates-of-depreciation-under-the-companies-act-as-mentioned-in-schedule-xiv.html

Follow the following link for Income tax act rate.

http://financefriend.in/income-tax/depreciation-chart-as-per-income-tax-act-for-fy-2012-13/

The Provision of 180 days and half rate of depreciation is applicable for all assessees and for income tax rates only. I.e not applicable for companies act rates and depending on their accounting policy following.

OM SAI SRI SAI JAI JAI SAI

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